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Golden Star Declares Commercial Production at Bogoso Sulfide Processing Plant in Ghana

Posted on: Tuesday, 10 July 2007, 18:22 CDT

Golden Star Resources Ltd. (AMEX: GSS)(TSX: GSC) today announced that its new Bogoso Sulfide Processing Plant commenced commercial production as at the end of the second quarter.

Peter Bradford, President and CEO, commented, "While we continue to optimize certain aspects of the Bogoso Sulfide Processing Plant to achieve design throughput and recovery on a consistent basis, we are satisfied that the processing plant has successfully completed the commissioning phase and that the BIOX® process works well. We have achieved a steady improvement in overall throughput and recovery and expect to achieve design throughput and design recovery by the end of the third and fourth quarters of this year, respectively. Gold production projections for the second half of 2007 will be updated in our second quarter results news release."

"During the commissioning phase, we encountered a number of mechanical and design issues that have been or are being corrected. Of note, we suffered systemic failures of certain equipment associated with our BIOX® tanks which has impacted our BIOX® circuit throughput capacity and operation in the second quarter. However, we are pleased with the response from the manufacturers who agreed to fabricate new items and expeditiously mobilize these to Ghana. We expect that the remaining new items will have been delivered and installed by the end of August 2007."

Second Quarter

We expect to report our second quarter results on August 7, 2007.

Gold sales at Wassa for the second quarter are estimated at 28,372 ounces, a marginal improvement on the first quarter and in line with guidance. At the Bogoso oxide processing plant, gold sales for the second quarter of approximately 13,910 ounces were impacted by the supply of ore from the Pampe pit, prior to the grant of the mining lease and permit on June 6, 2007. As a result, cash operating costs for the second quarter are expected to be higher than previous guidance.

Because of the new Bogoso Sulfide Processing Plant did not achieve commercial production until the end of the second quarter, our operating results for the second quarter will not reflect any gold sales from it.

Wassa Mine Environmental Award

We are pleased to report that for the second year in a row, the Wassa Mine has been awarded the "most improved mine" in Ghana by the Ghana Environmental Protection Agency. Having received this award two years running is a testament to the dedication of our staff at Wassa and their continued achievement of best practices in mining.

Company Profile

Golden Star holds a 90% equity interest in the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America. Golden Star has approximately 233 million shares outstanding.

Statements Regarding Forward-Looking Information: Some statements contained in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding future gold production, timing and rates of throughput, production and recovery at the Bogoso Sulfide Processing Plant and various components of the Bogoso Sulfide Processing Plant, the timing of the delivery and installation of new items for the Plant and future gold production from the Bogoso Sulfide Processing Plant. Factors that may affect such matters include delays in receiving needed equipment and parts, power shortages and interruptions, weather including excessive rainfall or drought and variations in ore grade or type, and technical or operating problems. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of risk factors in our Form 10-K for 2006.

Source: Business Wire

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